Amazon, Exxon, and Microsoft have become part of a new initiative aimed at enhancing the reputation of voluntary carbon markets, which have been marred by various scandals. This task force is being coordinated by the Bipartisan Policy Center think tank to bolster the credibility of these markets by analyzing current conditions and developing policy recommendations to help the federal government support fair, efficient, and transparent markets, as stated on the task force’s website.
The panel, composed of 17 independent members, was recently announced and coincides with increased investments in artificial intelligence by technology companies, which has led to significant stock market gains. However, these investments have also posed challenges for these companies in meeting their climate commitments.
In 2023, Microsoft experienced a substantial rise in carbon emissions, increasing by almost 30 percent from the previous year, despite having nearly 20 gigawatts of renewable energy under contract. Similarly, Amazon’s progress in reducing carbon emissions has been minimal, even with substantial investments in renewable energy and a significant fleet of electric delivery vehicles.
To address these issues and stay on track with their net-zero goals, both Microsoft and Amazon have become prominent participants in voluntary carbon markets. Recently, Microsoft acquired over 7 million metric tons of carbon credits within a single month. Last year, Amazon, along with other companies, invested $180 million in offsets to help preserve a portion of the Brazilian rainforest.
However, these markets have faced significant challenges recently. An investigation in 2023 uncovered that Verra, a nonprofit organization responsible for certifying carbon credits, had issued tens of millions of worthless offsets. These credits, which were supposed to mitigate deforestation in regions like Peru, were found to have little impact, as these areas were not significantly threatened by logging or clearing. The investigation suggested that over 90% of the credits related to rainforests had a negligible effect on reducing carbon emissions.
Verra disputed these findings, but six months later, the organization’s long-serving CEO announced his resignation. The newly formed task force also comprises representatives from startups like Heirloom, Isometric, and BeZero, as well as members from various nonprofits, the former CEO of Verra, and an executive from the timber company Weyerhaeuser.
